GWD 1-37

applebees

In corporate purchasing,

competitive scrutiny is typically

limited to suppliers of items that are

Line directly related to end products.

(5) With “indirect” purchases (such as

computers, advertising, and legal

services), which are not directly

related to production, corporations

often favor “supplier partnerships”

(10) (arrangements in which the

purchaser forgoes the right to

pursue alternative suppliers), which

can inappropriately shelter suppliers

from rigorous competitive scrutiny

(15) that might afford the purchaser

economic leverage. There are two

independent variables—availability

of alternatives and ease of changing

suppliers—that companies should

(20) use to evaluate the feasibility of

subjecting suppliers of indirect

purchases to competitive scrutiny.

This can create four possible

situations.

(25) In Type 1 situations, there are

many alternatives and change is

relatively easy. Open pursuit of

alternatives—by frequent com-

petitive bidding, if possible—will

(30) likely yield the best results. In

Type 2 situations, where there

are many alternatives but change

is difficult—as for providers of

employee health-care benefits—it

(35) is important to continuously test

the market and use the results to

secure concessions from existing

suppliers. Alternatives provide a

credible threat to suppliers, even if

(40) the ability to switch is constrained.

In Type 3 situations, there ate few

alternatives, but the ability to switch

without difficulty creates a threat that

companies can use to negotiate

(45) concessions from existing suppliers.

In Type 4 situations, where there

are few alternatives and change

is difficult, partnerships may be

unavoidable.

According to the passage, which of the following factors distinguishes an indirect purchase from other purchases?

1. The ability of the purchasing company to subject potential suppliers of the purchased item to competitive scrutiny
2. The number of suppliers of the purchased item available to the purchasing company
3. The methods of negotiation that are available to the purchasing company
4. The relationship of the purchased item to the purchasing company’s end product
5. The degree of importance of the purchased item in the purchasing company’s business operations

Why not D?

periodic

又选了一次，居然选b，我faint

In Type 4 situations, where there

are few alternatives and change

is difficult, partnerships may beunavoidable.

The number of suppliers of the purchased item available to the purchasing company

可供选择与数量多好的对应啊～～～完全没有引伸，就是写照

luoye1

I think D should be the right answer.
From the passage L 7-8 : "which are not directly related to production"
we may derive that the characteristic of "indirect purchase" is wheter it is "directly related to production"
Answer D is just ther rephrase of that.
E is wrong because the importance of a purchase "in company's

business operations" CANNOT tell
whether the purchase is directly related to end products or not.
For example, computer and advertising may be as essential to a company's business operations as theorigial materias for the end products are. But the former ones are indirect purchase while the latter ones are direct purchase.

jhiiool

I cannot find any clue to any of these 5 choices. To me, E is not related at all.

Although D is mentioned at the beginning of the passage, there is no evidence showing that the relationship distnguishes an indirect from a direct one.